Steve Ballmer backed down. On Sunday, the Los Angeles Clippers owner formally accepted the NBA’s sweeping punishment for salary cap circumvention tied to Kawhi Leonard — and apologized to everyone affected.
“I want to apologize to our fans, our staff, and the other team owners for the distraction and distress this matter has caused,” Ballmer said, per NBA.com. The Clippers confirmed they have paid the $30 million fine and are moving forward.
What the punishment covers
The NBA handed down its penalties on September 2, following an investigation that began in September 2025. At the center: a $28 million endorsement contract between Leonard and Aspiration Fund Adviser LLC, a company that has since filed for bankruptcy. The league found that the arrangement circumvented the salary cap.
The penalties are significant by any measure. The Clippers were fined $30 million and will forfeit five first-round draft picks. Ballmer himself was suspended for one full year — meaning he will have no involvement in franchise operations through the 2026-27 season. Team president of business operations Gillian Zucker received the same one-year suspension. Lawrence Frank, the president of basketball operations, was suspended for six months. Kawhi Leonard was fined $700,000 personally.
A franchise at a crossroads
The Clippers enter 2026-27 without their star player, without their owner, and five first-round picks lighter. That is a steep price — even for a franchise worth well north of $5 billion. The NBA’s cap system has rarely produced a punishment this broad against a single organization.
There was a brief window in which the Clippers appeared ready to challenge the ruling. That window closed Sunday. By accepting and paying the fine, the organization acknowledged the findings and drew a line under one of the more damaging chapters in recent NBA governance history.
The league’s message is clear: circumventing the salary cap — regardless of how a payment is structured — carries consequences that extend well beyond the transaction itself.
